Another interest rate cut could be in the offing next week when the Bank of Canada announces its latest policy adjustment.

That’s according to financial advisor Larry Short of Short Financial, a branch of IA Private Wealth.

Short says with all the uncertainty created by the possibility that threatened US tariffs on Canadian goods could be imposed as early as February 1, and Canada’s retaliatory response, he believes another rate cut is very likely.

“If we cut interest rates again, it’s another quarter cheaper, which is going to knock down the Canadian dollar. And why knocking down the Canadian dollar is important is because when the Canadian dollar goes lower, it fuels inflation in Canada. So there’s your balance, try to cut inflation, try not to slow it down too much, try not to slow down the economy, there’s your balance.”